Small Business EOFY Tax Tips 2022


The 30th of June is fast approaching! To make things a little easier this end of financial year, we've compiled a list of useful EOFY Tax Tips 2022  to make sure your business is well prepared and up-to-date for year-end.

Tip #1 Review your business structure with an accountant

EOFY is a perfect time for reviewing your business structure with your accountant. Is it still appropriate for your needs? Remember, your compliance and taxation requirements will change as a result of changing your structure.

Tip #2 Consider planning an ESS or Fringe Benefit Program

If you are looking to reward and incentivise your key employees, planning an Employee Share/Option Scheme or Fringe Benefit Program near year end has cost savings for your business.

Tip #3 Get ready for changes to Super Guarantee (SG)

From 1 July 2022, you'll need to make SG contributions at the new rate of 10.5%. Check that your software is updated to correctly calculate your employees' SG entitlement.

Related: Prepare for Changes to Super Guarantee from 1 July 2022

Tip #4 Review Accounts Receivable (Debtors) ledger and write off any bad debts

Ensure the correct documents are put in place supporting the write off to claim a tax deduction. Businesses can reduce their tax bill by claiming a tax deduction for bad debts. They will also be able to claim back the GST that was paid. However, you must write off the bad debt amount before the end of the financial year to claim it as a deduction.

Tip #5 Keep track of expenses incurred by a small business to support digital adoption or on registered training

It was proposed in the budget that expenditure incurred by a small business to support digital adoption or on registered training could be eligible for a 120% deduction. We recommend keeping track of these expenses. If these proposed changes eventuate, then for expenses between 30 March 2022 and 30 June 2022 in addition to the 100% deduction in the 2022 return you will also be able to deduct an additional 20% in the 2023 return.

Tip #6 Do a stock take! 

Make sure to do a stock take and consider any obsolete stock before 30 June. Review stock on hand and write off slow moving or obsolete stock.

Tip #7 Have Trustee Resolutions prepared and signed by EOFY

Ensure that the Trustee Resolutions are prepared and signed before 30 June 2022 for all Discretionary Family Trusts.

Tip #8 Follow the correct steps to receive a tax deduction for all super guarantee contributions

To obtain a tax deduction for all Super Guarantee Charge (SGC), make sure you’ve paid yourself and your employees their super guarantee through Single Touch Payroll (STP) on your accounting software system; and to be deductible at year end the super balance needs to have been physically paid.

Tip #9  Consider your COVID-19 related expenditure

This year consider your COVID-19 related expenditure as these items are most likely tax deductible other than travel to/from a clinic for testing and vaccinations.

Tip #10 Have your receipts ready for all claimable deductions

Be aware of what you can claim this financial year and have your receipts ready for all claimable deductions. It’s important to think carefully about the timing of invoices and pre-payment of expenses. This will impact your business’ overall tax position.

Tip #11 Don’t forget the temporary full expensing rules

Reminder the temporary full expensing rules are still available. Please ensure any capital items purchased are ready for use by 30 June 2022, to claim a deduction this year.

Tip #12 Review your business goals and budgeting

With the financial year ending, it's the perfect time to do a business check-up and refocus on business goals and budgeting for the next financial year. 
Happy EOFY 2022! 

New financial year is always a good time to reset, reflect and consider new initiatives 

Many businesses keep their accounting, bookkeeping, tax, compliance and payroll in-house in an effort to be more economical. Balancing all of these with perhaps an unsuitable skill level in your team requires significant responsibility, time and subsequently money to be able to manage this comprehensively. Making ill-informed decisions can set your business back and prevent you from optimising your valuable time.  

As the new financial year approaches, consider if you can benefit from working with an experienced professional accounting services firm to outsource these tasks and help you navigate your business through uncharted waters. Making smart, timely and accurate decisions is essential to business continuity planning. Get in touch with our team.

Related: How to Transition from In-House Accounting to Outsourced Accounting?

Have you noticed our #FridayExpertTips... here's one that relates to #BusinessAccounting

“Keep your records in order! Many accountants spend hours helping business owners dig for missing data. Clients are often surprised how much basic disorganisation can cost.”


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About Author

Azure Group
Azure Group

Azure Group is the leading Chartered Accounting, Business Advisory and Strategic Advisory firm supporting the growth & success of fast growing entrepreneurial businesses.

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